Alliance Appreciative of Support of Arizona Legislature, Governor Ducey in Signing HB2757 into Law
Monday, June 3, 2019
Posted by: Kristen Merrifield
FOR IMMEDIATE RELEASE
ALLIANCE OF ARIZONA NONPROFITS APPRECIATIVE OF SUPPORT OF ARIZONA LEGISLATURE, GOVERNOR DUCEY IN SIGNING HB2757 INTO LAW
PHOENIX, Ariz. (June 3, 2019): The Alliance of Arizona Nonprofits and its members are grateful and extend thanks for the support of Arizona Governor Doug Ducey and the Arizona Legislature in approving legislation enabling Arizona taxpayers to take deductions for donations to nonprofits even if they are not itemizing their returns.
“By signing HB 2757 into law, Arizona’s elected officials helped partially offset the projected annual loss of hundreds of millions of dollars in contributions to the state’s nonprofits from recent Federal tax-law changes that doubled the standard deduction and caused many taxpayers not to itemize,” said Kristen Merrifield, Chief Executive Officer of the Arizona Alliance of Nonprofits. “We very much appreciate the fact that the governor and the legislature recognized the importance of the issue and in providing an incentive for people to continue to give to nonprofit organizations.”
Under the new law, Arizona taxpayers who take the standard deduction can still take a charitable deduction for their gifts to nonprofits, capped at 25 percent of the total donation, “meaning that taxpayers have a benefit to their charitable giving, even if they choose not to itemize,” Merrifield said.
In related action as part of the tax package, HB 2757 increased the standard deduction in Arizona beginning in tax year 2019 to match standard-deduction changes for Federal tax filings. As a result, projections are that approximately 90 percent of Arizonans will take the standard deduction on their state income tax filings.
“Taxpayers taking the standard deduction are allowed to increase their standard deduction by 25 percent of their charitable contributions that otherwise would have been deductible had they itemized their returns,” Merrifield said.
Merrifield said she was “cautiously optimistic that the financial impact on nonprofits with this change would be beneficial, but we won’t really know the overall effect until later this year during the upcoming tax season,” adding that “we’re not clear about how end-of-session changes to Arizona’s standard deductions may influence an individual’s tax-related financial decision making.”
The Seidman Research Institute at the W.P. Carey School of Business at Arizona State University unofficially estimated that charitable giving in Arizona could be more than $300 million lower this year as a result of the Federal and state changes to standard deductions.
“We have taken important steps to support and protect Arizona’s nonprofit community in a collaborative effort with members of the legislature and the governor’s office and we plan to continue that effort in the months ahead,” Merrifield said.
The bill was sponsored by Rep. Ben Toma.
“We are grateful to Rep. Toma for his sponsorship and for the governor and the legislature in supporting this very important issue,” Merrifield said.
For more information about the Alliance of Arizona Nonprofits, visit www.arizonanonprofits.org.
• Kristen Merrifield, President and CEO, Alliance of Arizona Nonprofits, (602) 279-2966.
• Steve Carr, The Kur Carr Group, Inc., (602) 317-3040
• Kate Crowley, Crowley Communications, (480) 277-4178
About the Alliance of Arizona Nonprofits: The Alliance of Arizona Nonprofits is a statewide trusted resource and advocate for the nonprofit community. The Alliance’s mission is to unite, strengthen and advance Arizona’s nonprofit sector and is comprised of more than 1,000 members – both nonprofits and those in the community who support them – across the state. Since 2004, the organization has been dedicated to furthering the common interests of Arizona’s nonprofit community and envisions an Arizona where all nonprofits are valued, empowered and thriving, with support from grassroots efforts like Arizona Gives Day. For more information, visit www.arizonanonprofits.org.